Indeed. I thought so when Labour were promoting it that it was an awful idea. Still do.

Edited by Ethan Edwards on 29/05/2022 at 12:09

Just noted that those nice Iranians just hijacked a tanker in the Middle East. Watch out for fire works. The oil price could go much higher if the M.E. becomes unstable as the USA Navy carrier fleets have left.

Edited by SLO76 on 29/05/2022 at 20:16

It's because the global price of crude is up around $120, when six weeks ago it had fallen back to around $105. At the same time, the pound has fallen 5 cents against the dollar since early April, so that pushes prices up further too.

The new windfall tax has been introduced to take attention away from partygate. Of course the oil companies won't pay it, we all will. It could well reduce investment in getting more oil and gas out if the ground. That will further drive up prices and reduce our energy security.

It seems unlikely that they could pass it on directly unless there is a cartel. A small effect perhaps. They will always charge more if they think they can make more money, with or without a windfall tax.

Windfall taxes are a can or worms. We already have tax structures that are calculated on profits so there should be no need for them. Retrospective taxes like this undermine confidence and the moral case against tax avoidance, and they can't apply to businesses outside the relevant jurisdictions.

On the other hand, governments everywhere struggle to collect taxes in what amounts to a competitive environment of low-tax havens like Ireland.

'Low taxes' is a con politicians use to manipulate voters. The job of government involves doing things for the citizens of the state, and a low-tax promoting government is basically saying we are going to do as little as possible for you. And as we know, because Marx got this bit right, the benefit always goes to the people with the most money.